Confusion On Fusion Apps At Oracle OpenWorld

Like thousands of Oracle clients and a dozen or so Forrester analysts, I was at Oracle OpenWorld last week.  One of the big news items was the announcement of the availability of Fusion Applications.  The creation of these new applications has been a massive effort, involving many of Oracle’s top software designers and developers working for over five years.  My preliminary opinion, along with my colleagues, is that Fusion apps do have some useful new features and a better user interface than prior Oracle products, as well as providing a more credible SaaS option than Oracle's prior On Demand offerings. 

However, there seems to me to be a lack of clarity as to how Fusion apps fit in the evolution of the Oracle family of apps.   To its credit, Oracle has stated that it is going to be responsive to clients, not forcing them to convert to Fusion nor make staying on existing apps unattractive by not supporting and enhancing those apps.  Instead, it wants to make Fusion apps so attractive that clients will want to adopt them, either (rarely) as a whole suite or (more likely) as step-by-step replacement or additions to existing app products.  Still, that leaves unclear what Oracle sees as the endgame for Fusion vs. its other app products. 

As I see it, there are four scenarios for how Fusion apps will relate over time to the existing portfolio of apps that Oracle has acquired and continues to support through its Applications Unlimited position:

  1. Fusion apps take over and replace the other applications over time.
  2. Fusion apps become yet another app product line, which co-exists with the other apps.
  3. Fusion app features and functions percolate into and are absorbed into the other apps, which persist indefinitely.
  4. Fusion apps provide new categories of applications, which get brought into the other app families as add-ons.
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